Worried About Airbnb's New Liability Waiver Rules? State Farm Agent Dean Eastman Has Some Reassuring Advice.
Airbnb's recent changes to its rules on rental agreements and liability waivers have caused quite a stir among short-term rental hosts. Under the updated policy, hosts generally can no longer require guests to sign separate liability waivers as a condition of booking or staying at their properties, except in certain circumstances permitted by Airbnb.
Not surprisingly, some attorneys are already marketing legal protection packages to hosts, warning about the financial consequences of guest injuries and lawsuits. One recent solicitation offered a collection of legal templates, including amenity waivers, rental agreements, and operating agreements, for nearly $1,000.
But before hosts start worrying about what might happen if a guest slips getting out of a hot tub, falls down the stairs, or suffers another injury, there's a more fundamental question worth asking: What protection does your short-term rental insurance already provide?
We turned to Dean Eastman of State Farm Insurance, a STRASA business member, to help answer that question. Dean shared some reassuring information about liability coverage, legal defense costs, and the importance of having insurance specifically designed to cover short-term rental activity.
You can review Airbnb's official policy on contracts and other host requirements for details about the restrictions and exceptions.
What Happens if a Guest Gets Hurt?
Let's use the example that's making the rounds among attorneys marketing liability waivers: A guest slips getting out of a hot tub, suffers an injury, and hires an attorney. The host receives a demand for damages or is served with a lawsuit.
Does having a signed waiver determine whether the host is protected?
Not necessarily. According to Dean, State Farm's Home Rental coverage provides Section II liability protection for qualifying residences rented for more than 30 nights annually. This coverage can include damages for which the insured is legally responsible, along with legal defense expenses and court costs, subject to the policy's terms and applicable liability limits.
Dean also pointed out an important distinction between insurance companies. While some insurers may impose separate limitations on legal defense expenses, he explained that State Farm pays covered legal defense costs without a separate dollar cap on those expenses.
That's an important benefit. Being sued and being found legally liable are two different things. Even a host who has maintained a safe property and acted responsibly may face a lawsuit, and defending that lawsuit can be expensive.
Do Liability Waivers Really Protect Hosts?
We asked Dean whether a signed liability waiver materially affects an insurance company's decision to defend a host or pay a claim.
His answer was that the circumstances would need to be evaluated by the insurer's claims department, including whether the waiver could be legally upheld.
That's an important distinction. A signed waiver isn't a guarantee that a guest cannot sue, and not every waiver is necessarily enforceable. Likewise, the absence of a signed waiver does not automatically eliminate insurance protection.
Airbnb's new restrictions may change how hosts handle certain guest agreements, but they do not, by themselves, rewrite the liability coverage provided under an existing insurance policy.
The important question is whether the host has appropriate coverage in the first place.
What About Pools, Hot Tubs, and Other Amenities?
Hosts with swimming pools, hot tubs, and other recreational amenities may have additional concerns about guest injuries.
Dean explained that State Farm's liability coverage can extend to swimming pools and hot tubs, although the company's underwriting requirements include specific safety precautions.
For example, in-ground pools must have appropriate pool or yard fencing with self-closing, locking gates to prevent public access. Above-ground pools must have stairs or ladders that can be removed, secured, or locked to prevent unauthorized access.
These requirements are worth reviewing with your insurance agent, particularly if you've added amenities since purchasing your policy.
Dean also noted that exclusions can vary considerably among insurance companies. State Farm, for example, does not impose a blanket dog restriction, while some other insurers may exclude liability associated with certain dogs. Watercraft and other specialized amenities may require additional review.
The lesson is simple: Don't assume that everything on your property is automatically covered. Ask your agent, understand the requirements, and make sure your policy reflects how your property is actually being used.
Should Hosts Be Worried About Airbnb's New Rules?
We asked Dean directly whether hosts with proper STR insurance should be concerned about losing the ability to require separate liability waivers.
His response was reassuring.
"The important answer is you do not need to be worried if your current insurance liability limit is high enough and with very limited exclusions," Dean explained.
His advice is to review your existing policy, verify that it includes liability coverage for short-term rental activity, understand the exclusions, and make sure your liability limits are sufficient to protect your assets in the event of a lawsuit.
That's a much more useful starting point than assuming every host needs a collection of legal waivers and agreements.
Of course, insurance doesn't prevent accidents or lawsuits, and no policy covers every possible situation. Hosts still have a responsibility to maintain safe properties, follow applicable safety requirements, and understand the limitations of their coverage.
But the inability to require a guest to sign a liability waiver does not automatically mean that a host has lost the protection of their insurance.
Have Questions About Your STR Insurance? Talk to Dean Eastman.
Dean and his team understand the insurance questions facing short-term rental hosts, and they're happy to help you evaluate your coverage.
Whether you already have a State Farm policy or are insured through another company, Dean's office has offered to review existing policies to help hosts identify potential gaps, exclusions, and liability limits that may need attention.
If you're concerned about Airbnb's new liability waiver restrictions, have a swimming pool or hot tub, or simply haven't reviewed your STR insurance recently, consider reaching out to Dean for a conversation.
STRASA thanks Dean Eastman and State Farm Insurance for their support as a business member and for sharing practical expertise with San Antonio's short-term rental community. Our business members help us connect hosts with knowledgeable local professionals and resources that make responsible hosting easier.
*Insurance coverage varies by policy, endorsements, underwriting requirements, and the circumstances of individual claims. This article is intended for general education and does not constitute legal or insurance advice. Consult your insurance agent about your specific coverage.
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